Mortgage Loan
Looking for a large loan at a low interest rate? Our Mortgage Loan (Loan Against Property) lets you unlock the value of your residential or commercial property to meet personal or business needs. With high loan amounts, attractive interest rates, and flexible repayment terms, it’s the smart way to fund your goals.
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Features of a Loan Against Property (LAP):
- You can get up to 75% of the property’s current market value, as the loan amount.
- A loan against property implies a fixed or a floating interest rate.
- Rate of Interest of loans are based on the customer’s profile – salary, credit history, etc
- Both salaried and self-employed individuals can avail this loan.
- The loan tenure is between 10 year and 15 years and hence are long-tenure loans.
- Processing fee ranges from 0.50% up to 2% of the total loan amount.
- Top-up loan and overdraft facility could also be available.
Benefits of availing Loan Against Property (LAP)
- Lower rate of interest compared to other loans, as the loan against property is secured against property.
- Loan tenure can be upto 18 years resulting in lower EMI compared to unsecured loans where loan tenure is only upto 5 years.
- Additional collateral or guarantee is not required.
- Loan can be taken in the name of company or firm even if the property is owned in individual names of partners or directors.
Eligibility Criteria for a Property Loan
- You must be atleast 21 years of age to avail a mortgage loan.
- You must be one of the owners of the chosen property.
- You can be either salaried or a self-employed person with a good repayment history.
- If salaried, you should have a work-experience of at least 2 years.
- Monthly salary should be at least Rs. 15,000 and above.
- Your on-going EMIs will affect the Eligibility amount.
Role of Moneymithra in assisting you with a Loan Against Property?
Moneymithra, will provide you with unbiased comparison of loan against property schemes over different NBFCs and banks.
- You can get instant loan quotes from financial institutions about property loan. We give you the opportunity to compare and apply for the loan online. It takes less than 2 minutes to apply online.
- You can understand the loan against property requirement such as documents, eligibility, fees, charges, interest rate on one-page itself.
- You do not have to visit any bank or NBFC to apply for and avail the loan.
- If you meet the eligibility criteria, you will receive e-approval of loan in no time.
- The funds will be disbursed to your bank account after loan approval.
- You will get customized quotes based on your needs. You will experience a top-notch customer service.
Documents Required to Apply for a Loan against Property:
General Documents
Generic Property Related Documents for all:
- Registered sale deed/past sale deed chains (each sale deed of the past sales of the said property from its first allotment)
- Copy of property agreement
- Conveyance deed
- Lease deed (if the property is leased)
- Latest house tax return proofs
- Approved building plan from the Municipal Corporation
- Share certificate (if the society is formed)
- Latest maintenance bills Latest electricity bills
Other documents required based on financial profile:
FAQ :-
What are the uses of a Loan against Property?
A loan taken against a residential or commercial property is a Loan against Property and can be used for both personal and business purposes.
How amount can I get as loan against property?
The bank providing the loan looks at your repayment capacity for calculating the loan amount. The repayment capacity is calculated by considering your income, age, qualifications, number of dependants, spouse’s income, assets, liabilities, stability and continuity of occupation and savings history. However the eligibility of loan does not, generally, exceed 60 percent of the market value of the property.
Can there be a co-applicant for loan against property? If yes, who can be co-applicant?
Yes, there can be a co-applicant for loan against property. Your spouse can be considered as a co-applicant. Having co-applicant results in a higher amount being approved. However, if the property is co-owned, all co-owners mandatorily need to be co-applicants.
What would be the processing fees for a loan against property?
This depends on the loan providing bank and can vary from bank to bank and is generally around 1 percent.
What rate of interest is applicable on loan against property and how is it calculated?
Rate of interest is calculated on daily reducing balance. Your monthly out-go (equated monthly installment – EMI) is much lower as compared to the interest on annual reducing balance.
What can the tenure of the loan against property be?
The tenure for loans against property can be a maximum of 15 years tenure, subject to the condition it does not exceed your retirement age. This condition however can be flexible in certain cases
What are the modes to repay this loan?
The repayment can be through Equated Monthly Installments (EMIs) which is inclusive of principal and interest. The EMI commences from the month following the month in which the full disbursement is made.
What is the collateral or security that needs to be provided for loan against property?
In this type of a loan, one needs to mortgage a property for availing the loan. You need to deposit the title deeds and/or such other collateral security. Collateral security for by way of assignment of insurance policy or any such other assignable financial instruments are also required, as security to loan if deem necessary by the Bank. There should not be any existing mortgage, loan or litigation which is likely to affect the title to the property adversely.
Is there a prepayment or foreclosure option available for loan against property?
Yes. Prepayment is possible and there is no prepayment fee if you repay the loan after six months of availing the loan if you pay from your own source of funds without transferring the loan.
How is my loan reassessed if there is a change in status from Non-Resident Indian to Resident Indian?
The repayment capacity of the applicant(s) based on Resident status is reassessed and a revised repayment schedule worked out. The new rate of interest will be as per the currently applicable rate of Resident Indian loans (for that specific loan product). This revised rate of interest would be applicable on the outstanding balance being converted. A letter is given to the customer confirming the change of status.
